New record: Treasury raises debt at over 6% for the next five years.
According to Santiago Hagerman, partner at GBS Finance, this result was to be expected. “Until the terms and the requirements for the recapitalization of Spanish banks have been clarified and until the European leaders’ summit of next week there will be continue to be uncertainty and rates will remain at these levels” he explained. There are certain levels that he considers very appealing and have led to recent short-term investments in Spanish debt. Lasting between one and two years, these investments are vitamin for fixed income portfolios. “This is a good opportunity because we trust in the solvency of Spain,” Hagerman concludes.